YLD

Principal Active High Yield ETF

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Prospectus
Enhanced fact sheet

    Principal Active High Yield ETF

    Highlights

    Active yield strategy designed to deliver attractive yield while managing risk

    • Benchmark-agnostic approach results in an income-producing portfolio that seeks attractive high yield opportunities.
    • Quantitative tools, proprietary research, and exit strategies help identify opportunities and quickly adjust portfolio risk.
    • Seasoned team with history of actively managing high yield, averaging over 20+ years of experience.

    Fund details

    as of 11/21/2024 unless indicated otherwise
    Fund ticker
    YLD
    Benchmark
    Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index
    NAV
    $19.34
    NAV change
    $0.02
    Premium/Discount to NAV
    0.67%
    Median bid ask spread
    as of 11/21/2024
    0.46%
    Price
    $19.47
    Price change
    $0.08
    Daily volume
    361,350
    Total fund assets
    $250.4M
    Shares outstanding
    12,950,000
    Dividend frequency
    Monthly
    Inception date
    07/08/2015
    Morningstar category
    High Yield Bond
    Investment approach
    The investment seeks to provide a high level of current income. The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in below-investment grade (commonly known as "junk" or “high yield”) fixed income securities, such as bonds and bank loans. It invests in U.S. treasury securities, investment grade bank loans (also known as senior floating rate interests), and preferred securities.

    Performance & expenses

    As of 10/31/2024
    Name 1 month 3 month YTD 1-year 3-year 5-year 10-year Since inception Overall
    Net Asset Value (NAV) Return -0.30% 2.53% 8.16% 16.52% 4.09% 5.06% — 5.20% —
    Market Price Return 0.28% 2.53% 8.77% 16.68% 4.10% 5.07% — 5.26% —
    Benchmark performance
    Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index
    		 -0.54% 2.72% 7.42% 16.47% 2.97% 4.53% — — —
    Morningstar category average
    High Yield Bond
    		 -0.45% 2.27% 6.85% 14.83% 2.77% 4.02% 4.04% — —
    Morningstar percentile rankings — — — 20 14 14 — — —
    # of funds in category 664 662 648 646 588 553 422 — 588
    Morningstar rating — — — — — —
    30 Day SEC yield
    Unsubsidized as of 10/31/2024
    6.73%
    30 Day SEC yield
    Subsidized as of 10/31/2024
    6.73%
    Returns represent past performance and do not guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted.
    Returns shown for periods of less than one year are not annualized.
    Index performance information: no deductions for fees, expenses or taxes. Indices are unmanaged and individuals cannot invest directly in an index.
    The market price used to disclose the daily price and calculate daily premiums and discounts is the official closing price of the Fund, or if it more accurately reflects the market value of the Fund share at the time as of which the Fund’s NAV is calculated, the price that is the midpoint between the national best bid and national best offer as of that time. For the purpose of calculating Market Price Return, a market price prior to 02/01/2021 is defined as the midpoint between the highest bid and the lowest offer on the exchange on which the shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated, while a market price on or after 02/01/2021 is defined as the official close price as of the time that the Fund's NAV is calculated. If you trade your shares at another time, your return may differ.
    Premium / Discount to NAV
    as of 09/30/2024
    As of 09/30/2024
    Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
    Days traded at premium 55 57 60 61 61 62 60
    Days traded at discount 7 5 3 2 0 1 4
    This information shows differences between the per share net asset value (NAV) of the Fund and the market price of shares. For premiums and discounts reflected for dates prior to 11/02/2020, the market price utilized is the midpoint of the highest bid and lowest offer for Fund shares as of close of trading on the exchange where Fund shares are listed. For premiums and discounts reflected for dates beginning on 11/02/2020, the market price utilized is the official closing price of the Fund shares, or if it more accurately reflects the market value of the Fund shares at the time as of which the Fund share’s NAV is calculated, the price that is the midpoint between the national best bid and national best offer as of that time. Timing discrepancies may exist between NAV and closing price. Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices.

    Ratings

    Morningstar Ratings

    as of 10/31/2024
    3-year
    588 funds
    5-year
    553 funds
    Overall
    588 funds
    3 year | 588 funds
    5 year | 553 funds
    Overall | 588 funds

    Holdings

    Top 10

    as of 11/22/2024
    % of Assets
    % of Assets
    1. LADDER CAP FIN LLLP/CORP COMPANY GUAR 144A 06/29 4.75
    1.69%
    2. TRANSOCEAN INC COMPANY GUAR 144A 05/31 8.5
    1.66%
    3. ADAPTHEALTH LLC COMPANY GUAR 144A 03/30 5.125
    1.51%
    4. OLYMPUS WTR US HLDG CORP SR UNSECURED 144A 10/29 6.25
    1.49%
    5. LIGHTNING POWER LLC SR SECURED 144A 08/32 7.25
    1.47%
    6. VIBRANTZ TECH INC SR UNSECURED 144A 02/30 9
    1.47%
    7. TASEKO MINES LTD SR SECURED 144A 05/30 8.25
    1.46%
    8. FREEDOM MORTGAGE HOLD SR UNSECURED 144A 05/31 9.125
    1.46%
    9. JPMORGAN CHASE + CO JR SUBORDINA 12/99 VAR
    1.44%
    10. CALIFORNIA BUYER/ATLANTI SR UNSECURED 144A 02/32 6.375
    1.44%
    Portfolio Holdings
    Basket
    The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
    May not reflect current holdings or allocations.
    Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest.

    Portfolio characteristics

    Average effective maturity
    as of 10/31/2024
    6.81
    # of holdings
    as of 10/31/2024
    134
    Average yield to maturity
    as of 10/31/2024
    7.61%
    Turnover ratio
    as of 06/30/2024
    42.20%
    Weighted avg duration
    as of 10/31/2024
    2.82
    Weighted avg life to worst
    as of 10/31/2024
    3.81
    Yield to worst
    as of 10/31/2024
    7.35%
    Sharpe ratio (5-year)
    as of 10/31/2024
    0.25
    May not reflect current holdings or allocations.

    Portfolio management

    Mark Denkinger, CFA
    34 years of experience
    Joshua Rank, CFA
    24 years of experience
    Darrin Smith, CFA
    33 years of experience

    Literature

    Investment materials

    Portfolio holdings

    Disclosures
    Principal Funds are distributed by Principal Funds Distributor, Inc. ALPS Distributors, Inc. is the distributor of the Principal ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.
    Unlike typical ETFs, there are no indices that the Principal Active High Yield ETF attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager.
    Fixed income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal bond investment options nor their yields are guaranteed by the U.S. government. Lower-rated securities are subject to additional credit and default risk. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Investing in derivates entails specific risks relating to liquidity, leverage and credit, which may reduce returns and/or increase volatility. Unlike typical ETFs, there are indices that the Principal Active High Yield ETF attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio managers.
    Asset allocation and diversification do not ensure a profit or protect against a loss. Investing in ETFs involves risk, including possible loss of principal. ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Investor shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Ordinary brokerage commissions apply.
    Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
    Non-investment grade securities offer a potentially higher yield but carry a greater degree of risk. Potential investors should be aware that fixed Investments carry credit risks, default risk, liquidity risks, currency risks, operational risks, legal risks, counterparty risk and valuation risks
    The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
    NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE
    Morningstar percentile rankings are based on total returns and do not reflect the inclusion of sales charges. If sales charges were reflected, rankings could be lower.
    Performance assumes reinvestment of all dividends and capital gains.
    Includes, but is not limited to, unsettled activity from creation/redemption transactions and portfolio security trades and accrued interest.
    To obtain a prospectus, download or call Customer Service at 1.800.222.5852. Carefully consider a fund’s objectives, risks, charges, and expenses. The prospectus, or summary prospectus if available, contains this and other information. Please read it carefully before investing.
    The Bloomberg US HY Ba/B 2% Issuer Cap Index includes the USD-denominated, high yield, fixed-rate corporate bonds that are Ba or B rated. Issuer exposure is capped at 2%. (Legacy Ticker: LBICTRUU)
    © 2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
    The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.
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